Julia La Roche
businessinsider.com
The Commodity Futures Trading Commissionsaid in a release that a former Goldman Sachs trader hid an $8.3 billion trading position causing Goldman to lose more than $100 million unwinding the position.
Goldman has been ordered to pay a $1.5 million civil penalty to settle the charges for failing to supervise the trader, the release states.
Here’s the CFTC’s full release:
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Goldman, Sachs & Co. (Goldman), a registered futures commission merchant (FCM) based in New York, N.Y., has been ordered to pay a $1.5 million civil monetary penalty to settle CFTC charges that it failed to diligently supervise its employees for several months in late 2007. The CFTC Order also requires Goldman to cease and desist from violating a CFTC regulation requiring diligent supervision.